Suppose an Item Stays in an Inventory System for an Average

question 93

Multiple Choice

Suppose an item stays in an inventory system for an average of 8 days,and the demand rate for this item is 15 units per day.Determine the average inventory level for this item.

• A)100
• B)80
• C)120
• D)150

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Definitions:

Value Loss

The decrease in worth or utility of an asset or commodity, often due to changes in market demand, deterioration, or obsolescence.

Gift

An item given to someone without the expectation of payment or anything in return.

Water and Diamond Paradox

A classic economic paradox questioning why diamonds are more expensive than water, despite water being essential for survival and diamonds not.

Product Usefulness

The degree to which a consumer believes a product will be able to satisfy their needs, goals, and desires through its features and performance.